Substantive procedure may be defined as an audit procedure designed to detect material misstatements at the assertion level.
Substantive procedures comprise:
(i) Tests of details (of classes of transactions, account balances, and disclosures), and (ii) Substantive analytical procedures.
Analytical procedure is the process of analyzing plausible relationships among data including both financial and non-financial data. Likewise, substantive analytical procedures are the audit procedures that auditors perform to obtain evidence about the reasonableness of amounts shown in the financial statements by using such plausible relationships among data.
